MCX Cotton Nov futures recovers on Tuesday on short covering after closing lower for three consecutive sessions. The prices have been under pressure by higher than expected cotton production in the country. Textile industry has urged Cotton Corporation to procure about 100 lakh bales to stabilize the prices this season. Moreover, Gujarat government has announced a bonus of 500 per quintal over and above the minimum support price of 4,020.

Outlook

Cotton futures are expected trade sideways to lower tracking weak international prices and on reports of improved arrivals from the new season crop in the domestic market. However, higher bonus declared by the Gujarat government, CCI procurement may support prices.

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